But even with the apparent comeback in revenues, Coloradans and their leaders must remain mindful that the state’s long-term structural budget problem[2] – that is, the state’s inability going forward to provide the same level of services it now provides – still remain unsolved.

Economists for Gov. John Hickenlooper said revenues are projected to be $227.9 million higher in the current 2012-13 fiscal year that ends in June than was forecast in December. Meanwhile, for the 2013-14 fiscal year that starts in July, economists say revenues will be $256.1 million higher than prior projections.

The increases are due to continued and better-than-expected growth in individual and corporate income tax revenue, including stock sales. The rebound also tracks with a decrease in Colorado’s unemployment rate to to 7.3 percent in January from the December rate of 7.6 percent, less than the the national unemployment rate of 7.9 percent.

Hickenlooper, a Democrat, has indicated he wants to use returning revenues to restore education funding and for construction projects, and his budget director, Henry Sobanet, pointed out that returning revenues are not sufficient to finance a school funding overhaul being discussed in the legislature.

That should be obvious.

It should also be be obvious that even with returning revenues, the state’s resources will not be sufficient to maintain the level of services Coloradans expect.

A 2011 University of Denver study[3] projected that by 2025, the state would need another $3.5 billion in tax revenue just to maintain current levels of services, saying that revenues won’t even be enough to fund Medicaid, public schools and prisons much less the many other services like higher education, child protection programs and mental health services the state now provides.

Coloradans still must have an honest conversation about what services they want and what they’re willing to pay for them.